DOING BUSINESS IN COSTA RICA

Costa Rican Taxation

The Costa Rican tax system is comprised by state taxes and some local taxes. The most relevant state taxes are: income tax, value added tax, customs duties and, excise tax. Moreover, there are other state taxes, related to specific commercial operations and/or assets, such as: real-estate tax; real-estate transfer tax; tax on vehicles; tax on the transfer of vehicles; stamp taxes, among others.

The most important local tax is the municipal business license tax. Due to a constitutional rule, each one of the 81 Cantons (or Municipalities) has its own law governing this tax. These taxes are typically levied on a taxpayer’s gross income that is attributable to that Canton. In addition, there are other taxes, which even though characterized as state taxes, have been transferred to the local governments for their management and collection, such as the real-estate tax.